The Yamuna Expressway Industrial Development Authority (YEIDA) has floated a global tender for the third time, inviting investors and production houses to develop, operate, and maintain the first phase of the International Film City in Sector 21 on a public-private partnership (PPP) model.
This time the tender has been floated for the development of the first phase only, which will be spread over 230 acres. On the previous two occasions, the Authority had invited bids for the development of the entire project on 1,000 acres. However, no one showed firm interest in the project because of the huge investment needed.
According to the tender document, the bids were opened on September 30, and the last date to apply is November 30. The pre-bid meeting for the project will be held on October 26.
According to a YEIDA official, the technical bids are likely to be opened on December 5. He said that in the first phase, the project will be developed only on 230 acres of land, of which 155 will be dedicated for industrial use and the remaining 75 for commercial use.
“The industrial aspect of the project will comprise the development of film studios, a film institute, post-production facilities, and other film-related developments, while the commercial part will include activities such as hospitality projects, amusement park, etc. The expected project cost is likely to be around Rs 1500 crore,” the official told Moneycontrol.
Noida Film City: YEIDA holds talks with production houses, filmmakers to relax bidding conditions
According to the official, the project will have to be completed in eight years, while the industrial aspect of the development is scheduled to be completed in three years.
The relaxations
After receiving no interest from companies in the previous two global tenders, the government decided to make certain modifications to the project and give relaxations to bidders. These include extending the concession period from 60 years to 90 years.
Officials said that in August this year, the government agreed to extend the concession period and to develop the project in three phases to enhance its financial viability. The government had also agreed to relax the terms of revenue sharing, allowing the concessionaire to opt for a revenue share of 5 percent instead of a fixed annual premium of Rs 116 crore.
Earlier, the successful bidder was required to develop the entire 1,000-acre project in one go, with an estimated investment of not below Rs 7,200 crore. This has now been reduced to around Rs 1,500 crore for the first phase.
Uttar Pradesh Chief Minister Yogi Adityanath, in August 2023, directed YEIDA to initiate project work within the next six months. The third global tender was approved by the UP Cabinet in September 2023.
The remaining 770 acres of the project will be developed in subsequent phases, for which the Authority will prepare a vision document with the assistance of a consultant.
The project
The International Film City is an ambitious project of the Uttar Pradesh government. The announcement of the project was made in September 2020. The Film City is to be developed over 1,000 acres of land in YEIDA Sector 21, along the Yamuna Expressway. Earlier, it was envisaged to be built in one go, but as suggested by investors and industry experts, it will now be developed in three phases, with the first phase spread over 230 acres.
YEIDA is helming the project. The film city will be situated six km from the upcoming Noida International Airport in Jewar and 12 km from the Eastern Peripheral Expressway. The first global tender for the project was floated on November 22, 2021. It was revised on August 27, 2022.
On October 13, 2022, the Uttar Pradesh government approved the revised tender, and the second request for proposal (RFP) was published on October 17, 2022. The last date for the second global tender was March 31, but the project failed to attract any bidders.
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